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Sep 30, 2023
LegalZoom Q3 2023 Earnings Report
Reported an increase in revenue and a shift to net income from a net loss in the same quarter of the previous year.
Key Takeaways
LegalZoom reported an 8% increase in revenue to $167.3 million, driven by a 14% increase in subscription revenue. The company achieved net income of $7.5 million, a significant improvement from the net loss of $12.0 million in the same period last year. LegalZoom also launched several new products, including LZ Books, Doc Assist, and Business Licenses.
Revenue increased by 8% year-over-year, reaching $167.3 million.
Subscription revenue grew by 14% year-over-year, totaling $104.5 million.
Net income was $7.5 million, a significant improvement from the prior year's net loss of $12.0 million.
The company launched Business Licenses, LZ Books, Doc Assist, and a revamped Legal Forms library.
Revenue by Segment
Forward Guidance
LegalZoom provided guidance for the fourth quarter and updated full-year expectations. They expect Q4 revenue to be between $155 million and $157 million, with adjusted EBITDA between $28 million and $30 million. The full-year revenue is now projected to be in the range of $657 million to $659 million, with adjusted EBITDA between $114 million and $116 million.
Positive Outlook
- Revenue is expected to be in the range of $155 million to $157 million for Q4 2023.
- Adjusted EBITDA is expected to be in the range of $28 million to $30 million for Q4 2023.
- Full-year revenue is now expected to be in the range of $657 million to $659 million.
- Full-year Adjusted EBITDA is now expected to be in the range of $114 million to $116 million.
- Guidance reflects continued confidence in business performance and profitability.
Challenges Ahead
- Uncertainty in forecasting reconciling items for non-GAAP outlook.
- Difficulty in predicting the timing or amount of various items impacting GAAP financial measures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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